COMMITTED TO PROTECTING YOU AND OPEN TO SERVE YOU: BUTLER CARES COVID-19 UPDATE MARCH 29, 2020
Small Business Alert!!!
A quick Sunday Update – for those Small Businesses out there who would like a breakdown of how the CARES Act will impact them and what assistance is available provided by Affinity HR Group.
Our recommendation at Butler & Associates would be to contact the bank you use for your commercial banking needs and ask about the SBA Payroll Protection Loans, that are FORGIVABLE!!!
- Payroll Protection Loans: The CARES Act establishes emergency grants and a loan program for employers with fewer than 500 employees. Through the Small Business Administration, small businesses, sole proprietors and non-profits can borrow the sum of 2.5 times their average monthly payroll, health insurance, rent, and utilities, up to a total of $10 million, to keep their business afloat.
- Forgiveness for Payroll Protection Loans: Essentially, these loans can become grants and don’t have to be paid back if the employer meets certain conditions designed to ensure the money goes toward keeping workers employed in the near term. The Act provides for all or some of these payroll protection loans to be forgiven on a tax-free basis provided employers continue paying employees at normal levels during the eight weeks following the origination of the loan. In addition, payments made during that time for payroll costs, rent or mortgage interest, and certain utility payments may be forgiven. To apply for loan forgiveness, the borrower must submit an application that includes documentation verifying the number of employees and pay rates and cancelled checks showing mortgage, rent or utility payments.
This can provide immediate assistance for those businesses who have had to close or lay off employees.
Our understanding is this goes live Monday March 30, 2020.
There is also an expansion to unemployment benefits and individual stimulus payments to help weather the store.
- Expanded unemployment benefits: The Act expands the eligibility requirements for people to qualify for unemployment benefits by placing fewer restrictions on unemployment conditions and allowing states to relax restrictions if they choose to. It also increases states’ weekly maximum payments by $600 (regardless of income) for four months. The Act extends states’ current maximum weekly limit (on average 24 months) by adding 13 weeks of additional unemployment benefits. The individual states will still determine who is eligible for unemployment benefits, when they are eligible, and how much they are entitled to and for how long. As before, companies should not promise their former employees unemployment benefits, but they can agree to not dispute an appeal if the former employee need to file one.
- Individual stimulus payments: The Act provides for payments to be sent directly to individual Americans. These Individual stimulus payments will be:
• $1,200 for each single taxpayer who made $75,000 or less in 2019; those making up to$99,000 will have their payment reduced by $5 for each $100 increment earned above $75,000.
• $2,400 for each couple who filed jointly and made $150,000 or less; single taxpayers filing as head of household if they earn $112,500 or less; couples making up to $198,000 will have their payment reduced by $5 for each $100 increment earned above $150,000.
• An additional $500 will be paid out for each dependent child under the age of 17.
We have been tracking these developments for the past couple of weeks and our biggest recommendation would be to reach out to banker or lender for advice on how to apply for the Payroll Protection Loans.
Should you wish for a recommendation to an SBA lender we have a couple we know through our work in the community.
We hope this finds you healthy and safe.
Your Butler & Associate team members are working remotely to serve and protect you.
Here’s 6 easy ways to reach the team at Butler & Associates Insurance Agency anytime:
Your understanding that your experience with us may be a little different during this time of uncertainty is greatly appreciated. Although our physical office is closed, our team remains 100% committed to serving you.
BELOW ARE RESOURCES TO HELP YOU IN THESE UNPRECEDENTED TIMES:
PLEASE CONTACT US OR YOU INSURANCE CARRIER –
THEY MAY HAVE FLEXIBLE BILLING OPTIONS IF YOU ARE EXPERIENCING A HARDSHIP.
WE CAN ASSIST YOU!!!
BUSINESS INSURANCE RESOURCES:
- Family First Coronavirus Response Act (FFCRA) – Employee Rights Poster
- Webinar about HR, Business and Covid-19
- Business Interruption and Delivery Insurance
- Caliper: You’re Suddenly Managing Remote Teams. Now What?
- Steve Anderson: Protect Yourself From Coronavirus Scams
- Angela Adams: We Can Prepare Your Agency for a Successful Remote Work Environment
- Harvard Business Review: 15 Questions About Remote Work, Answered
- LCG: Cybersecurity Threats and How To Stay Safe During the COVID19 Pandemic
- Forbes: How Coronavirus Is Creating a Watershed Moment for Remote Work
- The Hartford: Business Continuity Planning for Infectious Disease Event
- PaySphere: Tips to Handle an Infectious Disease Outbreak
If you need any other assistance, or have questions about insurance or any other subject, please reach out to us. We are here to help and support you, your family and your business in any way humanly possible.
We appreciate this and every opportunity to serve you!
Bill Butler and the whole Butler & Associates Team